USD/CHF technical analysis: Traders await Swiss unemployment rate to break descending triangle

A four-day long descending triangle formation limits USD/CHF moves ahead of Swiss Unemployment Rate.
100-hour EMA offers an additional barrier to the upside.

Anil Panchal FXStreet

In addition to its choppy 11-pip trading range since morning, a four-day long descending triangle formation also limits USD/CHF pair moves as it trades near 0.9740 heading into Friday’s European market open.

Investors will seek clues from Switzerland’s July month seasonally adjusted Unemployment Rate (MoM) that is expected to remain unchanged at 2.3%.

While 0.9705 and 0.9780 define the extreme-lines of the triangle pattern, 0.9730 and 100-hour exponential moving average (EMA) level of 0.9770 can act as intermediate stops during either side momentum.

Additionally, pair’s break of 0.9705 will have to slip beneath the monthly low of 0.9692 in order to aim for further downside whereas an upside clearance of 0.9780 can trigger fresh rise towards 50% Fibonacci retracement of a seven-day downpour, at 0.9834.

USD/CHF hourly chart

Trend: Sideways

1. R3 0.9828
2. R2 0.9808
3. R1 0.9778
PP 0.9758
1. S1 0.9728
2. S2 0.9707
3. S3 0.9678

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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